20130403notice_of_application_order_no_32778.pdf

Office of the Secretary
Service Date
April 3,2013
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF IDAHO POWER COMPANY'S REQUEST ) CASE NO. IPC-E-13-06
FOR AUTHORIZATION TO IMPLEMENT )
FIXED COST ADJUSTMENT (FCA) RATES ) NOTICE OF APPLICATION
FOR SERVICE EFFECTIVE JUNE 1,2013 1
THROUGH MAY 31,2014 ) NOTICEOF
) MODIFIED PROCEDURE
)
) ORDER NO. 32778
YOU ARE HEREBY NOTIFIED that on March 15, 201 3, Idaho Power Company
filed an Application to implement Fixed Cost Adjustment (FCA) rates for electric service
effective June 1,201 3 through May 3 1,2014. The FCA is a mechanism to allow Idaho Power to
separate a portion of revenue to pay fixed costs from its volumetric energy sales, and it provides
symmetry through a surcharge or credit when fixed-cost recovery per customer varies above or
below a Commission-established base. The FCA rates are identified in tariff Schedule 54 and
are applicable to the residential and small general service customer classes.
YOU ARE: FURTHER NOTIFIED that the FCA mechanism functions by first
identifj4ng an authorized fixed-cost recovery amount for the residential and small general service
customer classes. This amount is a product of the actual number of customers in each class
multiplied by the fixed-cost per customer rate, which is established as part of determining the
Company's revenue requirement in its most recent general rate case. The authorized recovery
amount is then compared to the amount of fixed costs actually recovered by the Company, which
is determined by multiplying the weather-normalized sales for each class by the fixed-cost per
energy rate, also established in the Company's most recent rate case. The difference between the
authorized fixed-cost recovery amount and the actual fixed costs recovered results in an
adjustment each year to the FCA rate.
YOU A m FURTHER NOTIFIED that the Company's Application states there is a
2012 FCA balance of $8,362,974 for the residential class and $533,387 for the small general
services class, for a total amount to be recovered of $8,896,361. The FCA deferral balance is a
small decrease below the FCA balance currently collected in customers' rates. Accordingly, the
Company proposes an FCA rate decrease of 0.30% for both the residential and small general
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 32778 1
service customer classes. The decrease equates to a new FCA rate of 0.1 770 cents per kwh for
the residential class and 0.2262 cents per kWh for the small general service class.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the
public interest may not require a formal hearing in this matter and will proceed under Modified
Procedure pursuant to Rules 201 through 204 of the Idaho Public Utilities Commission's Rules
of Procedure, IDAPA 3 1 .01.0 1.201 -204. The Commission notes that Modified Procedure and
written comments have proven to be an effective means for obtaining public input and
participation.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on this
Application may file a written comment in support or in opposition with the Commission within
twenty-one (21) days from the service date of this Notice. The comment must contain a
statement of reasons supporting the comment.
YOU ARE FURTHER NOTIFIED that persons desiring a hearing must specifically
request a hearing in their written comments. Written comments concerning this Application may
be mailed to the Commission and Idaho Power at the addresses reflected below:
Commission Secretary Lisa D. Nordstrom
Idaho Public Utilities Commission Idaho Power Company
PO Box 83720 PO Box 70
Boise, Idaho 83720-0074 Boise, ID 83707-0070
Email: 1nordstromGjidahopower.coni
Street Address for Express Mail:
Zachary L. Harris
472 W. Washington Street Greg Said
Boise, ID 83702-591 8 Idaho Power Company
PO Box 70
Boise, ID 83707-0070
E-mail: zhairis@~idahopower.com
gsaid@idahor>ower.com -
These comments should contain the case caption and case number shown on the first page of this
document. Persons desiring to submit comments via e-mail may do so by accessing the
Commission's home page located at ww.r>uc.idalio.~ov. Click the "Comments and Questions"
icon, and complete the comment form, using the case number as it appears on the front of this
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 32778
document. These comments must also be sent to Idaho Power at the e-mail addresses listed
above.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the time limit set, the Commission will consider this matter on its merits and
enter its Order without a formal hearing. If written comments are received within the time limit
set, the Commission will consider them and, in its discretion, may set the same for formal
hearing.
YOU ARE FURTHER NOTIFIED that the Application and supporting workpapers
have been filed with the Commission and are available for public inspection during regular
business hours at the Commission offices. The Application is also available on the
Commission's web site at www.pu~.idaho.~ov by clicking on "File Room" and then "Electric
Cases."
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission's jurisdiction under Title 61 of the Idaho Code and specifically
Idaho Code Cj 61-501, 61-502, and 61-503. The Commission may enter any final Order
consistent with its authority under Title 61.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission's Rules of Procedure, IDAPA 3 1.0 1 .01.000 et seq.
O R D E R
IT IS IIEREHY ORDERED that this case be processed under Modified Procedure.
Interested persons and the parties may file written comments within 21 days of the service date
of this Order.
NOTICE OF APP1,ICATION
NOTICE OF MODIFIED PROCEIIURE
ORDER NO. 32778
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 3 l- d
day of April 2013.
MACK A. REDFORD. MISSIONER
MARSHA H. SMITH. COMMISSIONER
ATTEST:
l i Cdhmission ~ec'?;tary
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 32778